InTechnology rumours rife

Data storage distributor could be the subject or instigator of imminent acquisition

The channel rumour mill was running on overdrive last week after speculation arose about data storage distributor InTechnology being the subject or instigator of an imminent acquisition.

According to one source, corporate reseller SCH is interested in buying InTechnology. "This would be a good move for SCH and would certainly be a good fit," the source said.

Another source said that the move could be risky. "SCH could be trying to get into enterprise storage distribution, but resellers may feel uncomfortable if [InTechnology] is bought by a hybrid. InTechnology has been openly up for sale before and there is more industry consolidation to come."

Steve Brazier, chief executive of analyst Canalys, said that Tech Data's intention to buy Azlan suggested that more companies will look for acquisitions.

"What we are seeing is that Tech Data caught everyone on the hop with its acquisition of Azlan. Tech Data didn't buy a company in distress - it bought one that is prospering," he said.

A representative for InTechnology said: "We decline to comment on industry rumours." SCH was unavailable for comment.